Acquisition of Saracen Mineral, Northern Star Will Enter Top 10 Gold Mine Owners

Australian gold company Northern Star Resources is ready to be included in the list of 10 largest gold mining companies in the world based on market value. Northern Star bought Saracen Mineral Holding for A $ 5.76 billion, or the equivalent of US $ 4.14 billion.

In a joint statement, the Board of Directors of Northern Star and Saracen Mineral supports the share purchase plan and cash proposal that will bring the company’s valuation to US $ 11.5 billion.Reuters noted, Northern Star will become the eighth largest gold miner in the world by market capitalization.

This happened after the global gold price hit a record, which was above US $ 2,000 per troi ounce in August 2020.After gold is considered potential to become asafe havenassetin a Corona or Covid-19 pandemic situation.As a result, the market’s interest in testing gold mining company shares is getting higher.

The plan for the purchase offer will raise the company’s shares 10 percent higher at the close of stock exchange trading Monday (5/10).With the current stock price assumption, it means that Saracen Mineral shareholders will receive around 0.3763 ​​units of new shares paid up by Northern Star to shareholders.It also adds a special dividend of A $ 0.038 per share.

According to the company’s official statement as reported byReuterson Tuesday (6/10), later Northern Star will own 64% of the joint entity and Saracen Mineral will hold the remaining 36%.”This will be a globally competitive gold miner. I think this is quite a positive for Northern Star shareholders,” said Warren Edney, Research Analyst at EL&C Baillieu.

World Gold Producers Based on Gold Reserves

Company Gold reserves 2019 Gold reserves 2018 Change (%) Newmont Goldcorp 100.2 65.4 53.2 Barrick Gold Corp 71 62 14.5 Polyus PSJC 61 64 -4.7 Newcrest Mining 52 54 -3.7 Gold Fields 49, 3 48.1 2.5 AngloGold Ashanti 43.9 44.1 -0.5 Kinross Gold 24.3 25.5 -4.7 Harmony Gold 23.72 23.8 -0.3 Polymetal International Plc 23.7 22 , 3 6.3 Agnico Eagle Mines Limited 21.6 22 -1.8